Cabinet Approves Central Government Employees DA Hike of Three Percent

The Union Cabinet has officially approved a central government employees da hike of three percent, bringing financial relief to millions of workers and retirees ahead of Diwali. Information and Broadcasting Minister Ashwini Vaishnaw announced the update following a meeting led by Prime Minister Narendra Modi.

Details of the Dearness Allowance Increase

The newly cleared adjustment includes a three percent enhancement in both dearness allowance and dearness relief. According to official figures released by the administration, this revision will directly impact a vast population, covering roughly 48.54 lakh active personnel alongside 68.71 lakh retired individuals.

For more details on related administrative updates, readers can check Cabinet Approves Dearness Allowance Hike for Employees.

Implementation Timeline and Background

Authorities confirmed that the updated rates will be applied retroactively, taking effect from July 1, 2026. While framing the timing of the announcement, officials noted that the measure serves as a festival gift timed ahead of Diwali celebrations.

Additional Cabinet Approvals

Alongside the allowance adjustments, the Cabinet also greenlit other developmental initiatives. These included the Container Manufacturing Promotion Scheme with a budgetary allocation extending through financial year 2040, as well as distinct funding directed toward rural development structures.

Sources: The Hindu, The Times of India, Telegraph India.